Remortgage Help - Confusion

The_Realist

Hi, can someboyd help please.

My current 3 year mortgage of 5.79% (Yes it's high but we only had 10% deposit and were just glad to get the loan) is due to expire in October 2013.

Due to pay rises, profitable share schemes, etc, we have managed to do some overpaying so now own about 30% (assuming house price is about the same which I think is reasonable). The best mortgage rates appear to be those with 40% deposit and we can afford another 10% lump sum to get us there. However there would be large overpayment charges which we don't want to pay if we pay any more on existing deal.

Clearly when we move remortgage, we should be able to get a much better deal (less than 3% with 40% deposit), but how do I go about paying the extra 10% to get the good deals. Do I wait for current to run down, then negotiate a new deal and pay the 10% in between??

Any help much appreciated!

Thanks

Let_Us_See

To avoid a penalty wait for the re-mortgage and borrow £10,000 less. In affect this amount is transferred to your solicitor who will make an overpayment when redeeming your existing mortgage.

The_Realist

Thank-you.

General question. I'm with Santander currently and their best rate is not the best in the market. Do mortgage companies offer deals personally say to match a best rate to keep existing customers or does that sort of thing not happen anymore?

How early do you generally get the ball rolling so to speak with a remortgage?

Thanks again

R_P_W

You could call your lender and ask whether they have any deals for existing customers?

They will have set products so won't price match other lenders.

Yorkie1

Three months before expiry of tie-in period (i.e. fixed term for you) is a common period to start looking for alternative products.

The 3 options at the end of the fixed period are:

1. Go onto SVR (or whatever the lender calls it)
2. Go onto a new product with existing lender
3. Re-mortgage with a new lender.

You can pay off the additional 10% at the end of the fixed term / tie-in period as described above.